The Federal Government has begun moves to stabilise the price of aviation fuel (Jet-A1) in a bid to ease mounting pressure on airlines and prevent further disruptions in Nigeria’s aviation sector.
Thank you for reading this post, don't forget to subscribe!The intervention, led by the Minister of Aviation and Aerospace Development, , in collaboration with the (NMDPRA), comes amid rising fuel costs that have significantly increased the cost of flight operations across the country.
However, the development has triggered mixed reactions within the aviation and downstream petroleum sectors, with stakeholders warning that attempts to regulate prices in a deregulated market could distort supply, worsen scarcity, and encourage black-market activities.
Industry operators argue that market forces should be allowed to determine pricing, cautioning that any form of rigid control could recreate subsidy-like inefficiencies in the sector. Some also warn that airlines are already under pressure, with current fuel prices making it increasingly difficult to sustain operations without raising airfares.
Despite the concerns, the Federal Government says its intervention is aimed at stabilising the aviation sector and ensuring continued air connectivity nationwide. Officials are also seeking to prevent further escalation of costs that could force airlines to reduce flight frequencies or suspend routes.
As part of ongoing efforts, Keyamo has held series of consultations with stakeholders, including Airline Operators of Nigeria (AON), aviation agencies, and petroleum regulators. These meetings focused on finding a workable framework for pricing stability and improved supply coordination.
An executive summary of the engagements shows that meetings were held on April 22 and 23, 2026, followed by a Technical Committee session on April 24 involving key agencies such as the Ministry of Petroleum Resources, FAAN, NAMA, NCAA, airlines, and fuel marketers.
The committee reportedly agreed on indicative price ranges for Jet-A1, pegged between ₦1,760 and ₦1,988 per litre in Lagos and ₦1,809 and ₦2,037 per litre in Abuja. The pricing model was based on global Platts averages and reflected volatility in the international oil market.
It was also agreed that marketers should sell directly to airlines within the approved price window, while regulators work to adjust cost components and improve transparency in pricing. Authorities were further directed to streamline airside fuel distribution by validating licensed operators and reducing inefficiencies.
Additional resolutions included encouraging structured credit arrangements between marketers and airlines, resolving outstanding debts in the sector, and considering the inclusion of aviation fuel under the Naira-for-Crude initiative to support price stability.
Meanwhile, domestic carrier has raised concerns over what it described as an unprecedented surge in aviation fuel costs, warning that the situation poses a serious threat to the survival of airline operations in Nigeria.
The airline disclosed that fuel costs per flight have risen sharply from about ₦2.1 million in January to approximately ₦7.6 million as of April 27, 2026—representing more than a 350 percent increase within just a few months.
According to the airline, despite maintaining efficient operations, it has been unable to reflect the rising costs in ticket prices due to competitive pressures and concern for passengers. It warned that if the trend continues, airlines may be forced to cut capacity or suspend some services in order to remain viable.
Ibom Air also questioned why aviation fuel prices in Nigeria remain significantly higher than global averages, especially given that a large portion of supply reportedly comes from local refineries.
In a separate reaction, the Trade Union Congress of Nigeria (TUC) has called on the Federal Government to urgently address rising fuel and energy costs, warning that they are worsening hardship for workers and citizens.
The union urged the government to consider using excess crude revenues above budget benchmarks to cushion fuel prices and reduce the burden on consumers, while also calling for a 50 percent tax reduction for workers and manufacturing companies.
TUC President Festus Osifo said the persistent rise in petrol, diesel, and aviation fuel prices is driving inflation, increasing transportation costs, and weakening purchasing power nationwide.
The union also criticised rising electricity tariffs, describing them as unfair amid poor service delivery, and called for improved metering systems and an end to estimated billing.
While government officials insist that ongoing engagements are aimed at stabilising the aviation sector and preventing further economic shocks, industry stakeholders remain divided on the approach, with many warning that long-term stability will depend on balancing regulation with market-driven pricing.